Elon Musk sold social network X to his startup xAI
Elon Musk has announced that he has sold social network X to his artificial intelligence startup xAI.
Here's What We Know
According to the agreement, X came under the control of xAI for $33 billion in the form of a share swap. The deal values X at $45 billion, but includes $12 billion in debt. This is significantly less than Musk paid for the platform in 2022, when Twitter cost him $44 billion. The combined company is worth $80 billion.
"@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B of debt).
- Elon Musk (@elonmusk) 28 March 2025
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centres at...
X currently has more than 600 million active users and remains a popular platform. At the same time, xAI, founded by Musk in 2023, is developing artificial intelligence. Its Grok model is already one of the three most powerful AIs in the world and runs on the Colossus supercomputer with 100,000 Nvidia Hopper GPUs.
In December 2024, xAI raised $6 billion in investment from Blackrock, Morgan Stanley, and other companies. This will double the capacity of Colossus to 200,000 Nvidia Hopper GPUs.
Musk explained that the deal will help combine the capabilities of X and xAI, including their data, computing resources, and AI models.
For now, Grok only has access to X's public posts, but after the merger, AI capabilities may expand. If X becomes part of xAI, personal data could be used to power the AI.
Source: @elonmusk
